dynamics of inflation implied by macroeconomic data, the model needs to assume an average duration of price contracts which is …

We assess the effects of financial shocks on inflation, and to what extent financial shocks can account for the … shocks through sign restrictions. Our main finding is that expansionary financial shocks temporarily lower inflation. This … during the latest financial crisis. We then explore the transmission channels of financial shocks relevant for inflation, and …

, wages and inflation to monetary policy shocks becomes notably less pronounced. This attenuation reflects that hours worked … modification substantially lowers the effective stickiness of nominal wages, resulting in markedly different wage and inflation …

bank can stabilize all variables at the cost of higher inflation and that macroeconomic volatility is smallest if the …

margin at the expense of hiring, which makes hours too volatile. The Ramsey planner uses inflation as a instrument to dampen …

inflation. Furthermore, home bias in households' preferences allows for real exchange rate fluctuation, giving rise to …